Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

Thursday, 23 October 2014
Login |  Register 
 
Find Products or Services in your local community
 
KSCB Radio News US National Business Health & Science Political World Sports Top NPR Headlines Sports National Headlines
Exxon Mobil To Buy XTO Energy
12/16/2009

Exxon Mobil Corp plans to buy XTO Energy Inc for about $30 billion in stock, in a move that thrusts the U.S. energy giant to the forefront of North America's fast-growing natural gas industry.

With the buy, Exxon, the largest publicly traded energy company, will become the top U.S. natural gas producer as it bets on natural gas expanding its share in the world's largest energy market.

The bid, announced on Monday, spurred expectation of a wave of consolidation in the energy industry as cash-rich companies such as Exxon move to snap up smaller players with attractive assets.

The deal, which is subject to XTO shareholder approval and expected to close in the second quarter, would be Exxon's biggest since it purchased Mobil Corp in 1999, and the eighth-largest ever in the energy and power sector.

Exxon will issue 0.7098 common share for each share of XTO, representing a premium of about 25 percent over XTO's closing price on Friday of $41.49.

Exxon's shares fell 4.3 percent to $69.69 on Monday, while XTO shares jumped more than 15 percent to $47.86 on the New York Stock Exchange.

The American Stock Exchange index of natural gas companies jumped nearly 5 percent, with Chesapeake Energy Corp up 5.8 percent at $24.37 and Devon Energy Corp up 4.6 percent at $66.80 on the New York Stock Exchange.

The deal is valued at $41 billion, including about $10 billion in XTO debt, and is based on the December 11 closing share prices of the two companies.

XTO, based in Fort Worth, Texas, is one of the leading developers of unconventional resources including shale oil and gas or gas trapped in sands with low permeability that require advanced drilling techniques to recover.

These resources have emerged as a potentially huge new resource play in North America, and their development has so far been dominated by independent U.S. exploration and production companies. But now, big oil companies like Exxon are starting to look for reserves around the world.

© Copyright KSCB News
You will need to be logged in to leave a comment.
Please Login

characters left

The posting of advertisements, profanity, or personal attacks is prohibited.
Click here to review our Terms of Use.



MOST VIEWED STORIES
Huge Demethanizer Transport Making It's Way Through Liberal
480 Board Announces Names for New Schools
U.S. Energy Secretary Lauds Abengoa in Hugoton
Friday's Scores
Skins Tame Lions in District Opener
Fearless Four Overcomes Elements to Make State  
Guymon to Host Tri-State Area Museums with Michael Martin Murphey & Comedy Duo Oct. 25
Eliel Gonzalez is Mead Lumber Athlete of the Week  
Friday's Games
Redskins Blank TMP for North Cup Win
Click Here For All Stories

LATEST STORIES
Trick or Treat For United Way This Weekend
Guymon to Host Tri-State Area Museums with Michael Martin Murphey & Comedy Duo Oct. 25
Walk To End Alzheimer's This Saturday
Hutch Continues their Conference Dominance in Volleyball
Four LHS Girls Compete at State
Great Bend Dampens Liberal's WAC Title Hopes
480 Board Announces Names for New Schools
Saints Squeeze Past Dodge
Advance Voting Begins in Seward County
Aggies Grind Out Fifth Victory
Click Here For All Stories
Click Here for KSCB Talk Radio 1270 am
Click Here for B107.5
Click Here for The Legend 102.7
click Here for ozzBlog
Click Here for the Kansas Lottery

©2014 Seward County Broadcasting Company, Inc.
1410 N. Western Ave. Liberal, KS 67901

Emergency Alert System | EEO Public Report Form | The Public and Broadcasting

Powered by Radio Media Group